2. Agenda
1. Definition of shopper marketing
2. Why is shopper marketing that important?
3. Differences with consumer marketing
4. Overcome shopping barriers
5. How to deal with Shopper marketing?
6. Some important trends
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3. What is shopper marketing?
“Shopper Marketing is the use of insights-driven marketing
and merchandising initiatives to satisfy the needs of targeted
shoppers, enhance the shopping experience and improve
brand equity for retailers and manufacturers.
The ultimate goal is to improve business results for all parties
involved.”
Turn shoppers into buyers!
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4. The Evolution towards Shopper Marketing
The big waves in retail Marketing
Scanning
Space
Management
ECR Category
Management
Best Practices
Category
Management
1995
1989
1975
1985
A natural progression dictated by seismic changes in :
• Consumer/Shopper Behavior
• Mass Communication
• Retail landscape
• Technological innovation
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Next Generation
Store Designs
Shopper
Marketing
Today
2000
5. Agenda
1. Definition of shopper marketing
2. Why is shopper marketing that important?
3. Differences with consumer marketing
4. Overcome shopping barriers
5. How to deal with Shopper marketing?
6. Some important trends
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6. 2. Why shopper marketing is that important.
Question?
What is the biggest brand
for orange juice?
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7. 2. Why shopper marketing is that important.
Question?
What do you do when
Duracell batteries are
out of stock at Carrefour?
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8. 2. Why shopper marketing is that important.
On the product/brand level:
•
3000 marketing messages/day
•
> 30.000 product introductions in 1 year (average)
•
130.000 sales promotions in supermarkets in 2012
(decrease of 1.5 %)
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9. 2. Why shopper marketing is that important.
On the retail side:
•
•
Choice is unlimited: f.i. Carrefour Planet stocks > 30.000 products
•
Strong retail brands (housebrands)
•
Delhaize = quality, Colruyt = sustainability, Carrefour = choice
•
Success of hard discounters even increases
•
More and more concept stores/pop-up stores
•
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Convenience: number of retail channels doubled in 50 years
Online shops are uncountable
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10. The retailer is part of game!
Open to
Strong brands!
Own client strategy!
Own positioning!
CORA
CARREFOUR
The world at my feet
Perspective “me/us”
Consumption society
Temptation
DELHAIZE
COLRUYT
Enjoying quality in food
Massclusivity
ALDI/LIDL
Control
Basic Needs
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Perspective “others”
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Rational & Ethical
Efficiency
11. The retailer is in the game!
Shopper
Physical/virtual/digital
environment
Competitive
environment
brands
Retailer/
dealer
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12. 2. Why shopper marketing is that important.
On the consumer side:
5% loyal to a brand (devided loyalty)
73% shops with 5 different retailers
26% is loyal to a retailer
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68% brand switchers
Seeks for experience and authenticity
12
13. 2. Why shopper marketing is that important.
On the consumer side:
Too much!
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confusion
13
14. Agenda
1. Definition of shopper marketing
2. Why is shopper marketing that important?
3. Differences with consumer marketing
4. Overcome shopping barriers
5. How to deal with Shopper marketing?
6. Some important trends
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16. Shoppers are not customers! And vice versa.
Who drinks Coca- Cola?
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Who buys Coca- Cola?
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17. 3. Shoppers are not customers! And vice versa.
Customer marketing
Shopper marketing
• Who is the consumer?
• Who does the shopping?
• Where does he use my product?
• Where does he do the shopping?
• When does he use my product?
• When and how?
• How does he use my product and
• Why does he buy this product or
why?
brand?
• How can I increase the use of my
• How can I make the shopper buy
product?
MY brand?
SECOND MOT (moment of truth)
FIRST MO (moment of truth)
80% OF THE BUYING DECISION HAPPENS INSTORE!
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18. Shoppers are influenced in- and outside the physical/
virtual store:
Outside the store
Inside the store
•
Demographics
•
Retail circumstances
•
Psychological element
•
Mindset
•
Family issues
•
Time & budget pressure
•
Personal issues
•
Discovery
•
Consumer advertising
•
Senses
SHOPPER MARKETING
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19. Shopping segments
Lot of time
Less time
Like to shop
Hates (daily) shopping
Fun shopping
Run shopping
Impulse shopping
Comparison shopping
Shopping list
No shopping list
High spending
Low spending
Save time
Spend time
Remark: most of the shoppers are “multi- vidual”
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Comparison
shopping
Fun
shopping
Convenience
shopping
Discount
shopping
Save money
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Spend money
20. Shopper research:
Understand how shoppers think, plan, decide,
A good fragrance increases
sales with15%
•
•
•
•
•
•
•
•
•
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Focus Groups
Shopalongs
In-store Shopper Groups
Subject Matter Expert Interviews
Ethnographic research
Online and Traditional Surveys
Advanced quantitative analytics
Geographic data mapping
Secondary subscription databases
21. Agenda
1. Definition of shopper marketing
2. Why is shopper marketing that important?
3. Differences with consumer marketing
4. Overcome shopping barriers
5. How to deal with Shopper marketing?
6. Some important trends
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22. What is a shopping barrier?
A barrier is an element of the product offering or the retail
environment that prevents a shopper from buying a brand
•
•
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De-selection Barriers
• Ones that cause a brand to be “ruled out” on a cursory overview
of the category
Selection Barriers
• Barriers that prevent a brand to be chosen upon closer
consideration
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23. Shopper marketing is about overcome shopping barriers
De-Selection
1.
Perceived lack of need
2.
Low brand line-up or awareness
3.
Lack of “shelf pop”
4.
Habit change
Prevent Selection
1.
2.
Choice Confusion
3.
Usage Uncertainty
4.
Poor Value
5.
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Unconvincing Benefit; Performance Uncertainty
High threshold to close the deal
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24. Perceived lack of need
Heard of your brand, but does not want or need it now.
Bring the consumer to the point of wanting
your product now!
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25. Low brand line-up or awareness
Not aware of anything beyond what I typically buy.
Help the Shopper find something that best
meets her needs!
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26. Lack of Shelf Pop
Brand isn’t on radar screen when shopping.
Make sure the Shopper doesn’t overlook your brand,
particularly at shelf.
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27. Habit change
Too hard to change what I’m used to doing/using.
Make sure the Shopper doesn’t overlook
your brand at shelf.
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30. Usage uncertainty
Not shure what it would be like to use.
Give them an idea what is required to use
the product!
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31. Poor value
Can get the benefit from another, cheaper brand.
Overcome the value equation in a
competitive way.
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32. High threshold to close the deal
Websites are not user friendly for chosing products, nor paying products
•
•
•
•
•
•
•
navigation unclear
Offer not detailed, visual, ... enough
Technical issues
Too many thresholds (passwords, data, ...)
Feeling of unsecurity
High cost for delivery
No sufficient distribution for delivery
Control, test, measure online shopping
experience (drop out …..)
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33. Conclusion on Shopper barriers
•
Selective perception: get seen!
•
Volume presentation works!
•
Influence key points in the shop:
o
o
Reduced availability
o
•
“star” offers
Compare 3 products instead of 2
Less is more!
•
Shoppers buy advantages
•
Shoppers like change (f.i. in retail)
SAINE COMMON SENSE !
OBSERVATION!
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34. Conclusion on Shopper barriers
1. Define the shopper barriers
2. Make a selection (1 – 2, KISS)
3. Define your shopper marketing execution plan
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35. Agenda
1. Definition of shopper marketing
2. Why is shopper marketing that important?
3. Differences with consumer marketing
4. Overcome shopping barriers
5. How to deal with Shopper marketing?
6. Some important trends
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36. 6 steps, all linked with each other, towards an
effective Shopping Marketing Strategy
Phase 1: Collect information & gain insights
2
Get to know your market
1
3
5
Define
Shopper
Marketing
Strategy
Get to
know
your
retailer
Get to
know
yourself
4
Get to
know your
shopper
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6
Execute
&
Measure
37. 7 theories of Shopper psychology
1.
Shoppers have a limited ability to focus
2.
Shoppers shop with their peripheral vision
3.
Entry to the category is via Signpost Brands
4.
De-selection before selection
5.
Shopping mirrors usage habits
6.
Discontinuity creates triggers in-store
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38. Phase 2: Strategy Definition, Execution & Measurement
2
Get to know your market
1
3
5
Define
Shopper
Marketing
Strategy
Get to
know
your
retailer
Get to
know
yourself
4
Get to
know your
shopper
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6
Execute
&
Measure
39. Some basic principles
•
Never forget about the Brand Equity
•
Define the main shopping barriers and keep it simple
•
Shopper marketing is about immediate effect
•
Shopper marketing messages are direct and give the answer to “Why should I
buy, here and now”.
•
Although FMOT marketing seems pragmatic, emotions play an important role
Shopper marketing fits into the complete marketing mix & -plan
Product
Place
Promotion
Packaging
Coupons
Category mgm
Sampling
Claim
Reduction
Retailer equity
POS
Language
Volume actions
Experience
(sensorial)
Loyalty
…
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Price
…
…
…
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40. A way of thinking about FMOT marketing:
The shopping cycle
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41. How to evaluate a shopper marketing campaign?
3 questions to ask:
Stop
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Engage
54
Close
42. Agenda
1. Definition of shopper marketing
2. Why is shopper marketing that important?
3. Differences with consumer marketing
4. Overcome shopping barriers
5. How to deal with Shopper marketing?
6. Some important trends
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44. 6. Most important shopper marketing trends
•
The consumers get smarter & seek for relevance*
•
Shopper marketing moves between smart shopping and pleasure
shopper
•
Digital evolution can cause shopper revolution
•
Shopper marketing is more & more sensorial
•
Multi channeling has become common sense
* Carre Associates Shopper Reseach 2010
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45. The consumers get smarter & seek for relevance
Informed, compare
Pre-sales more important
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46. Shopper marketing moves between smart shopping and
pleasure shopping
Easy
Efficient
Enjoyable
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47. Digital evolution can cause shopper revolution
•
Pre-sales (stock check, choice)
•
On point of sales (price comparison, info, payment via
mobile)
•
•
QR Code
•
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Location marketing (offer based on location)
Augmented reality
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48. Shopper marketing is more & more sensorial
Senses
Taste
Light
sound
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49. Multi channeling has become common sense
•
86% of consumers use several channels at once
•
Online offline :
•
•
eBay, Google & Amazon
New buzzwords:
o ROPO(Research Online Purchase Offline)
o Phygital (combination of the physical and digital worlds)
o Channel integration
o Multi-screen
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50. Innovative companies that change the world of shopping
Hointer: takes humans out of the shop
Zara: includes stocking light and replenising with totally
new products
Selfridges: combining pop-up shops with art
Augment: is trailblazing in simulated reality, a necessity
in today's world of e-commerce.
STORY: is a retail space that completely changes every
four to eight weeks and gives e-commerce sites like
Birchbox a physical store
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51. Innovative companies that change the world of shopping
Storenvy: allows independent vendors to open and customize their own virtual
shops
Threadless: is an apparel company that lets artists submit designs for t-shirts,
housewares and more. The designs with the most votes become available for
purchase.
Amazon continues to be the leader in e-commerce, including much more
categories
Fab is the "Ikea Of Fashion.“
Zappos builds customer relationships like no other.
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